India Opposes Asian Development Bank Providing Financial Support to Pakistan

India has strongly objected to the Asian Development Bank (ADB) extending financial support to Pakistan, raising serious concerns about the potential misuse of international funds. According to government sources, India warned that Pakistan’s increasing defence expenditure, declining tax revenues, and lack of meaningful macroeconomic reforms create a high risk that external assistance could be diverted away from development priorities and towards military spending.

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India further highlighted Pakistan’s repeated reliance on International Monetary Fund (IMF) bailouts and its poor track record in implementing reforms, which it attributed to persistent military interference and weak governance structures. These factors, India argued, not only threaten the effectiveness of any financial assistance but also pose a risk to regional peace and stability.

Pakistani finance minister Muhammad Aurangzeb’s advisor Khurram Schehzad confirmed financial support by ADB, said, "ADB approves $800M financing package for Pakistan under Resource Mobilization Reform Program (Subprogram-II) -- $300M PBL + $500M PBG." 

Update: ADB approves $800M financing package for Pakistan under Resource Mobilization Reform Program (Subprogram-II) -- $300M PBL + $500M PBG.

Diplomacy led by Economic Affairs & Ministry of Finance secures majority support at ADB Board. 🇵🇰 #Pakistan#ADB#FinanceReforms

— Khurram Schehzad (@kschehzad) June 3, 2025

"Diplomacy led by Economic Affairs & Ministry of Finance secures majority support at ADB Board," he added. 

India urged the ADB to exercise strict oversight of any financial aid, closely monitor the implementation of reforms, and take measures to safeguard the bank’s financial interests. India’s stance reflects broader concerns about the potential impact of Pakistan’s economic instability on the region and the importance of ensuring that international development funds are used responsibly and transparently.